Texas Promulgated Contracts exam questions with complete solution
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Course
Texas Promulgated Contracts
Institution
Texas Promulgated Contracts
Texas Promulgated Contracts are a set of standardized real estate contract forms developed and required by the state regulatory body, TREC, to govern real estate transactions in the state of Texas.
Texas Promulgated Contracts
The elements of a valid contract are, competent parties, consideration, legal
subject matter, in writing, and ___________.
(a) Default
(b) Mutual consent
(c) Property condition
(d) Recording - correct answer ✔ B
A(n) __________________ contract is defined as a contract that is binding on the
parties, with one or more of the parties having contractual duties that have not
yet been performed.
(a) Executory
(b) Executed
(c) Bilateral
(d) Void - correct answer ✔ A
In the business of real estate, ___________ is defined as something given in
exchange for a promise.
(a) Consideration
(b) Mutual assent
(c) A bribe
(d) Legal subject matter - correct answer ✔ A
The TREC-promulgated contract forms:
(a) Are for optional use by real estate licensees
(b) Are drafted by the Broker-Lawyer Committee
,Texas Promulgated Contracts
(c) Are promulgated by the legislature
(d) Are used in both commercial and residential transactions - correct answer ✔ B
In a lease with a "right of first refusal" provision:
(a) The price is set when the lease agreement is negotiated
(b) The tenant has promised to buy the property
(c) The TREC promulgated form must be used
(d) The tenant has the right to match or better any offer the landlord receives to
prevent the property from being sold to someone else - correct answer ✔ D
TREC has promulgated forms for:
(a) lease purchase transactions
(b) cooperatives
(c) right of first refusal
(d) residential transactions - correct answer ✔ D
An offer can be communicated by ___________________.
(a) Phone
(b) Hand delivery
(c) E-mail
(d) All of the above - correct answer ✔ B
The Third Party Financing Addendum For Credit Approval is used when:
(a) The buyer is obtaining FHA financing
(b) Paragraph 4.A(2)(a) is checked in the contract
, Texas Promulgated Contracts
(c) The buyer is obtaining VA financing
(d) The buyer is obtaining any kind of financing - correct answer ✔ B
In the Third Party Financing Addendum for Credit Approval:
(a) The buyer has no incentive to obtain financial approval
(b) The buyer has a definite time to notify seller of the inability to obtain financing
approval
(c) The buyer's earnest money will not be returned if the buyer does not obtain
financing
(d) The option period is explained - correct answer ✔ C
The Third Party Financing Addendum for Credit Approval cannot be used for:
(a) VA guaranteed loans
(b) FHA insured loans
(c) Seller Financing
(d) Texas Veterans Loans - correct answer ✔ B
According to the Seller Financing Addendum, the interest rate is:
(a) Set at 6%
(b) Negotiated between the parties
(c) Set by TREC
(d) Determined at closing - correct answer ✔ A
___________________ occurs when a buyer assumes and agrees to pay the
seller's existing mortgage.
(a) Loan assumption
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